Fortinet leads cybersecurity stocks sharply lower after warning of deal delays

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Fortinet saw an "unusually large volume of deals" pushed out beyond the June quarter, its chief financial officer said Thursday.

Fortinet Inc. saw an “unusually large volume of deals” pushed out beyond the June quarter, its chief financial officer said Thursday, and that commentary was weighing on the broader cybersecurity sector.

While... Fortinet Inc. saw an “unusually large volume of deals” pushed out beyond the June quarter, its chief financial officer said Thursday, and that commentary was weighing on the broader cybersecurity sector. While Fortinet’s adjusted earnings per share of 38 cents topped the 34-cent FactSet consensus and its $1.29 billion in revenue essentially matched the consensus view, the company came up shy on billings in the second quarter. That metric came in at $1.54 billion, while analysts had been modeling $1.59 billion.

Shares of the company fell nearly 16% in after-hours trading Thursday, while peer names logged steep drops as well. Palo Alto Networks Inc. shares PANW were off more than 6%, while CrowdStrike Holdings Inc. CRWD and Zscaler Inc. ZS shares each declined more than 2%.

 

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